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Bank of Maharashtra back in the black, Q4 profit at Rs 72 crore

The bank’s net interest income increased to Rs 1,000 crore in the quarter.

, ET Bureau|
Last Updated: Apr 29, 2019, 07.52 PM IST
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The lender said it will focus on loan growth in retail, agri and MSME portfolios which makes for about 51 per cent of their loan-book.
Mumbai: Bank of Maharashtra posted a profit of Rs.72 crore in the March quarter as against Rs.113 crore losses in the corresponding quarter year ago, driven by an increase in their interest income and recoveries from reduction in non-performing accounts (NPA).

The bank’s net interest income or the difference between what it pays for funds and what it makes on loans increased to Rs.1000 crore in the quarter as against Rs.881 crores a year ago. Gross NPA came down to 16.4 per cent against 19.3 per cent in this period, while net NPA fell to 5.5 per cent from 11.2 per cent.

The bank, which was under RBI’s prompt corrective regime till January, also bettered their liquidity and equity requirements with CET 1 ratio improving to 9.88 per cent from 8.97 per cent while CRAR grew to 11.86 per cent as against 11 per cent last year.

The bank’s provision coverage ratio also saw mark improvement at 81.5 per cent from 58.71 per cent in a bid to strengthen its asset quality going forward.

The public-sector lender said it will focus on loan growth in retail, agri and MSME portfolios which makes for about 51 per cent of their loan-book.

"(We will) continue recovery efforts with special focus on recovery in written off account and arresting slippages, focus on increasing non-interest income and controlling operating expenses and improve the profitability and returns for all stakeholders,” the bank said in a press release.
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